PLANSPONSOR - June/July 2021 - 24

RESEARCH | 2021 RECORDKEEPING SURVEY
" While there have been mergers in the recordkeeping
marketplace, we feel there are still many out there with the
tools, technology and people to achieve the results the sponsor
wants, " says Alicia Malcolm, a senior vice president and partner
in The D'Aiutolo Malcolm Consulting Group at UBS Financial
Services Inc. in Buffalo, New York. " But in some cases, there
may be technology-integration issues if there's been a merger
or acquisition. And the organizations may not necessarily
operate with the same mindset if multiple cultures have been
merged. " She says some recordkeepers have cut back relationship
management staff and started referring sponsors to a call
center to resolve questions or issues, while others may charge a
higher fee but provide a dedicated relationship manager for the
sponsor and adviser.
Stay Current on Technological Issues
Especially for plan sponsors less accustomed to performing
RFPs, it is important to keep in mind the technological issues,
such as cybersecurity, at the forefront for recordkeeping today.
With cybersecurity, go beyond asking about the basics
of what a recordkeeper does to prevent attacks, suggests Jim
Sampson, director, retirement advisory services at Hilb Group
Retirement Services in Cranston, Rhode Island. " It's also an
issue of: Who's got a guarantee to reimburse a participant if there
is a loss, and what do the guarantees entail? " he says. " It's something
I think too few sponsors are asking about now. "
The ability of recordkeepers' systems to fully communicate
with payroll providers' systems also has become an issue
in current searches, Hanna says. Sponsors increasingly look for
360-degree integration, he says. They want not just 180 degrees,
where their payroll provider's system can speak to the recordkeeper's
system, but the two systems communicating seamlessly.
" The data is transmitted directly from the recordkeeper's
system to the payroll provider's without the employer having to
touch it, " he explains. " There's no better way for a sponsor to
create efficiencies, and it's also an opportunity to reduce errors,
which goes back to the desire for fiduciary protection. "
And recordkeepers increasingly can incorporate add-on
financial wellness elements to their platform and participant
websites, Ray says. " The flexibility has grown dramatically in
these service packages. It's just a question of, what is important
to you and your participants? "
Recordkeepers' current capabilities vary on the integration
of programs for emergency savings, student loan repayment
and health savings accounts (HSAs), Sampson says. " Moreprogressive
sponsors are starting to ask, 'What's embedded in
the participant website from a financial wellness standpoint?
And what other programs can we tie in to the recordkeeper's
platform such as emergency savings accounts?' " he says. " The
ability to integrate HSAs on a recordkeeping platform is a big
one now. More sponsors are asking, 'Can our participants
[access] both [such] accounts on one website?' "
Total Defined Contribution (DC) Plan Assets, by Plan Types
$10t
$9.43t
$8t
$7.12t
$6.11t
$6t
$4.60t
$4t
$6.08t
l 401(k) $6.81t
l 403(b) $1.26t
l 457 $498b
l Money purchase/
Profit sharing $340b
$2t
l Nonqualified deferred
compensation $175b
l Other $345b
$0
2013
2015
2017
2019
2021
24 PLANSPONSOR.COM June - July 2021
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PLANSPONSOR - June/July 2021

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